With rental prices soaring in the capital cities from a major shortage of supply, and house values at levels that haven’t been so low for over five years, there are some incredible opportunities for first home owners and investors. I make no bones about being an advocate for owning property, I strongly believe that no matter when you buy, you are future proofing your “rental” costs by paying a mortgage rather than being subject to ever increasing rental costs.
Right now is a great time to buy a property as the market has undoubtedly taken a battering over the last three years, and prices have come back least five years, however I do not believe that this will stay like this for ever, and it creates a fantastic opportunity to get into the property market for the same cost as rent. With rental costs increasing by up to 6% per annum in some cities due to the lack of supply, and this trend not about to stop due to the continued undersupply of new product to the market, renting will only get more expensive over time.
This is great news for investors as well, as will improve rental yields even further. Look around www.realestate.com.au and you will easily find properties in growing areas that represent fantastic value and have incredible opportunity for rental growth due to tight supply and growing demand. It is all about location, so rule out your emotions and use your head to identify the best deals. Property cycles are varied throughout Australia, and it may not be the best time to invest in property in your own back yard, but there are plenty of good opportunities in the wider market if you are willing to spend the time and look.
So if you are a first home buyer considering whether you should jump in boots and all to home ownership, or a potential investor considering whether the timing is right to buy that perfect investment, now is a great time to talk to professional lending specialist about how much you can borrow. Or you could look back in three years time and wish you acted back in 2012! Call Jon or Tammy on 1300 LOANWIZE.